How the Public Turned Away from Its Craving for the Pizza Hut Chain

In the past, Pizza Hut was the favorite for groups and loved ones to feast on its unlimited dining experience, help-yourself greens station, and make-your-own dessert.

Yet a declining number of diners are choosing the restaurant nowadays, and it is closing 50% of its UK restaurants after being bought out of administration for the second occasion this year.

It was common to visit Pizza Hut when I was a child,” notes one London shopper. “It was a regular outing, you'd go on a Sunday – make a day of it.” However, at present, aged 24, she says “it's not a thing anymore.”

According to 23-year-old Martina, the very elements Pizza Hut has been recognized for since it started in the UK in the seventies are now outdated.

“The way they do their buffet and their salad bar, it seems as if they are cheapening on their quality and have reduced quality... They provide so much food and you're like ‘How is that possible?’”

Because ingredient expenses have soared, Pizza Hut's buffet-style service has become quite costly to operate. Similarly, its restaurants, which are being reduced from over 130 to a smaller figure.

The business, similar to other firms, has also faced its expenses increase. In April this year, labor expenses increased due to higher minimum pay and an increase in employer social security payments.

Two diners say they would often visit at Pizza Hut for a date “from time to time”, but now they choose a rival chain and think Pizza Hut is “too expensive”.

According to your selection, Pizza Hut and Domino's rates are similar, notes a culinary author.

While Pizza Hut has off-premise options through third-party apps, it is falling behind to big rivals which specialize to this market.

“Another pizza company has managed to dominate the off-premise pizza industry thanks to aggressive marketing and frequent offers that make consumers feel like they're getting a bargain, when in reality the original prices are relatively expensive,” explains the analyst.

Yet for these customers it is worth it to get their evening together sent directly.

“We definitely eat at home now instead of we eat out,” comments the female customer, matching latest data that show a decrease in people visiting quick-service eateries.

In the warmer season, casual and fast-food restaurants saw a six percent decline in patrons compared to last summer.

Moreover, a further alternative to restaurant and takeaway pizzas: the cook-at-home oven pizza.

An industry leader, global lead for leisure at a leading firm, notes that not only have retailers been providing premium oven-ready pizzas for years – some are even promoting home-pizza ovens.

“Lifestyle changes are also having an impact in the popularity of quick-service brands,” says the analyst.

The growing trend of protein-rich eating plans has boosted sales at chicken shops, while hitting sales of high-carbohydrate options, he notes.

As people dine out more rarely, they may prefer a more upscale outing, and Pizza Hut's American-diner style with comfortable booths and nostalgic table settings can feel more retro than luxurious.

The rise of high-quality pizzerias” over the last several years, including boutique chains, has “completely altered the consumer view of what excellent pie is,” says the culinary analyst.

“A light, fresh, easy-to-digest product with a carefully curated additions, not the massively greasy, heavy and overloaded pizzas of the past. This, in my view, is what's led to Pizza Hut's struggles,” she states.

“What person would spend nearly eighteen pounds on a small, substandard, disappointing pizza from a chain when you can get a stunning, expertly crafted traditional pie for less than ten pounds at one of the many authentic Italian pizzerias around the country?

“It's a no-brainer.”

An independent operator, who operates a pizza van based in a regional area comments: “The issue isn’t that lost interest in pizza – they just want better pizza for their money.”

The owner says his adaptable business can offer high-quality pie at affordable costs, and that Pizza Hut struggled because it could not keep up with new customer habits.

At an independent chain in a UK location, the proprietor says the sector is broadening but Pizza Hut has not provided anything fresh.

“There are now slice concepts, regional varieties, new haven, sourdough, traditional Italian, deep-dish – it's a wonderful array for a pizza-loving consumer to discover.”

Jack says Pizza Hut “should transform” as younger people don't have any fond memories or allegiance to the chain.

Gradually, Pizza Hut's customer base has been fragmented and allocated to its more modern, agile competitors. To keep up its costly operations, it would have to charge more – which industry analysts say is tough at a time when household budgets are shrinking.

A senior executive of Pizza Hut's international markets said the acquisition aimed “to safeguard our customer service and protect jobs where possible”.

It was explained its first focus was to keep running at the open outlets and delivery sites and to assist staff through the restructure.

But with large sums going into running its restaurants, it likely can't afford to allocate significant resources in its delivery service because the industry is “complex and partnering with existing third-party platforms comes at a price”, experts say.

Still, experts suggest, lowering overhead by withdrawing from competitive urban areas could be a smart move to evolve.